DID IT SNOW IN APRIL TOO?
from The Burning Platform
You may have heard the standard Wall Street storyline about bad weather from December through March depressing consumers and keeping them from spending money they don’t have on shit they don’t need. The corporate mainstream media obligingly regurgitates the storyline in order to maintain their advertising revenue from Wall Street and corporate America.
Did you notice all that snow in April? How else can we explain the disastrous retail sales numbers reported this morning? Maybe the temperatures were too moderate to shop. Maybe the pollen storms created an allergy to shopping. Maybe it was those nasty Spring showers bringing May flowers. Watching the nimrods, economist hacks, bimbos and boobs on bubblevision attempting to spin the decline of the American consumer is priceless. They reveal themselves to be nothing but captured teleprompter readers. Journalism is dead in the corporate media realm. The only truth is found in the blogosphere.
Below is a chart that doesn’t even reveal how bad the numbers really are. The country is in the midst of a recession as markets reach all-time highs. This fact alone unveils the criminality of the Federal Reserve and their sole purpose of propping up and enriching their owners on Wall Street. The suffering and impoverishment of average Americans is revealed in the true jobs numbers, credit card usage, and retail sales. The entire house of debt is built upon Americans accounting for 68% of GDP by buying shit. If they don’t borrow and spend, the shark dies. This shark looks sick.
Of course the numbers they report are sliced, diced, adjusted, and massaged to achieve a happy ending. And still they sucked. Total retail sales didn’t budge in April versus March. A big fat 0% increase. Auto sales fell. Furniture sales plummeted. Electronics sales fell. Grocery store sales fell. Department store sales crashed (bye bye JC Penney & Sears). To demonstrate the ridiculousness of the government “adjustments” they said gasoline station sales fell by 0.7%. The national price of gasoline soared by 7.5% in April. Their adjustments are pure crap.
Now for some observations about the unadjusted numbers:
- Last year the unadjusted numbers dropped by $1.5 billion from March to April. This year they dropped by $7.5 billion, a 500% decrease. Spin about Easter is just bullshit.
- Their bullshit adjustments are used to explain month over month changes, but the year over year numbers can’t be ignored. Total retail sales were up only 0.7% over last April. With even government reported inflation running at 2.2%, REAL retail sales are falling hard.
- When you remove the subprime debt goosed auto sales, retail sales have actually FALLEN by 0.4% year over year.
- Year over year: furniture, grocery, and clothing stores are flat. Department stores, electronics stores and gasoline stations are down. This means they are all negative on an inflation adjusted basis. This means awful retail profits going forward. This means more store closings and more people out of jobs.
- On an adjusted basis, even auto sales FELL in April. Have they run out of clueless broke dupes to dole out 7 year 0% loans to? Or are the bad debts piling up at such a rate that risk aversion is beginning to set in?
- If the weather was the cause of the retail slowdown, why have internet sales gone stagnant? They are flat for the last three months.
- The best year to date results are for restaurants. I attribute this to two factors. People are so depressed with their shitty lives, they are drinking themselves into oblivion and/or the price of food just happens to be up 10% over last year, so restaurants are just passing that along. WINNING!!!
First quarter GDP was negative. The fourth quarter was juiced by inventory building, Obamacare cost increases, and higher utility costs to keep people from freezing to death. The Atlanta Fed model is down to 0.7% second quarter GDP. The only people not experiencing a recession already are Wall Street, Washington DC, and the parasites who leech off the oligarchs robbing this country blind. Retail sales are in free fall at the same rate they were falling in 2008. Look out below. It’s gonna get ugly.